Help for tourism and hospitality

Temporary VAT cut

A temporary cut to VAT, targeted at the hospitality and tourism sectors, was announced on 8 July 2020. From 15 July 2020 to 12 January 2021, a reduced rate of VAT of 5% (rather than the usual 20% standard rate) will apply in some cases.

The new temporary rate will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars and cafes and similar premises. It will also apply to hot take-away food and hot take-away non-alcoholic drinks. More information is here https://bit.ly/2DrjsTR and a revised VAT Notice taking account of the change here https://bit.ly/38DKVNC.

To help tourism, the VAT cut will also apply to supplies of accommodation, such as hotels, bed and breakfasts, campsites and caravan sites and admission to attractions, such as cinemas, theme parks and zoos across the UK. The new VAT Notice on hotels and holiday accommodation is here https://bit.ly/3ei6RPj and guidance on admission charges here https://bit.ly/3ffyABw.

Eat Out to Help Out

This is an additional, temporary scheme to boost the hospitality trade, running just for the month of August 2020. On Mondays, Tuesdays and Wednesdays from 3 to 31 August 2020, it will give diners 50% off the cost of eat-in meals and non-alcoholic drinks, up to £10 per person. Restaurants, bars, cafes and other eligible food service establishments will need to register to participate and will then receive reimbursement for the 50% discount. Further details are here https://bit.ly/3edB9D0 and registration details here https://bit.ly/2ZV9gun.